Equity and Comprehensive Income

9 Months Ended

May 06, 2012

Equity and Comprehensive Income

Note 5—Equity and Comprehensive Income

Dividends

On May 9, 2012, subsequent to the end of the third quarter, the Board of Directors declared a quarterly cash dividend in the amount of $0.275 per share, with a total $119 payable on June 8, 2012, to shareholders of record at the close of business on May 25, 2012. The Company’s dividend rate was $0.24 per share in the third quarter of 2011.

Stock Repurchase Programs

The Company’s stock repurchase activity during the third quarter and first thirty-six weeks of 2012 and 2011 is summarized in the following table:

	Shares Repurchased (000’s)		Average Price per Share		Total Cost
Third quarter of 2012		1,488	$	87.41	$	130
First thirty-six weeks of 2012		5,369		83.38		448
Third quarter of 2011		1,393	$	73.25	$	102
First thirty-six weeks of 2011		5,144		67.40		347

These amounts differ from the stock repurchase balances in the condensed consolidated statements of cash flows due to changes in unsettled stock repurchases at the end of the quarter. The remaining amount available for stock repurchases under the approved plans was $3,258 at May 6, 2012. Purchases are made from time-to-time, as conditions warrant, in the open market or in block purchases, and pursuant to plans under SEC Rule 10b5-1. Repurchased shares are retired.

Components of Equity and Comprehensive Income

The following tables show the changes in equity attributable to Costco and the noncontrolling interests of consolidated subsidiaries and other entities in which the Company has a controlling interest, but not a total ownership interest:

	Attributable to Costco			Noncontrolling Interests			Total Equity
Equity at August 28, 2011	$	12,002		$	571		$	12,573
Comprehensive income:
Unrealized loss on short-term investments, net of $1 tax		(2	)		0			(2	)
Foreign-currency translation adjustment and other		(52	)		(18	)		(70	)
Net income		1,100			45			1,145
Total comprehensive income		1,046			27			1,073
Stock-based compensation		179			0			179
Stock options exercised including tax effects		89			0			89
Release of vested restricted stock units (RSUs) including tax effects		(75	)		0			(75	)
Conversion of convertible notes		1			0			1
Repurchases of common stock		(448	)		0			(448	)
Cash dividends declared		(209	)		0			(209	)
Equity at May 6, 2012	$	12,585		$	598		$	13,183
	Attributable to Costco			Noncontrolling Interests			Total Equity
Equity at August 29, 2010	$	10,829		$	101		$	10,930
Initial consolidation of noncontrolling interest in Costco Mexico		0			357			357
Comprehensive income:
Foreign-currency translation adjustment and other		362			62			424
Net income		984			58			1,042
Total comprehensive income		1,346			120			1,466
Stock-based compensation		152			0			152
Stock options exercised including tax effects		315			0			315
Release of vested RSUs including tax effects		(50	)		0			(50	)
Conversion of convertible notes		2			0			2
Repurchases of common stock		(347	)		0			(347	)
Cash dividends declared		(284	)		0			(284	)
Equity at May 8, 2011	$	11,963		$	578		$	12,541

The following table shows components of comprehensive income for the third quarter of 2012 and 2011:

	12 Weeks Ended
	May 6, 2012			May 8, 2011
Net income including noncontrolling interests	$	405		$	341
Unrealized gain/(loss) on short-term investments		(1	)		3
Foreign currency translation adjustment and other		6			161
Comprehensive income		410			505
Comprehensive (income) attributable to noncontrolling interests		(11	)		(37	)
Comprehensive income attributable to Costco	$	399		$	468